Identity Theft Feed

My mother is almost 85. She's no Betty White, but all things considered she doing darn well. Especially when it comes to cognition and attitude. She listens to an audio book a week, keeps up with the news and her favorite TV game show (Jeopardy) and doesn't take any guff from unsolicited callers trying to sell her stuff. Or worse. Unfortunately, that latter instance is not the case for many in my mom's demographic. A recent Marketplace series examined how the aging brain may become more susceptible to financial scams. Among the findings, data suggest that as we get older,... Read more →


A big part of companies' federal tax responsibilities is paying employment taxes for their workers. These are the Social Security, Medicare and unemployment taxes on those employees' wages. However, when it comes to workers who are hired as contractors, it's the worker who's totally responsible for these taxes, in addition income tax withholding via estimated tax payments. That's why, when appropriate and fiscally feasible, many firms try to hire independent contractors. Sometimes, though, the line between employees and contractor is fine. It's facts and circumstances in each case when deciding how to classify a worker. And if the Internal Revenue... Read more →


At least one state, Texas, joins the Internal Revenue Service in making filing accommodations for those affected by software company's malware troubles. Watch the full classic Roseanne Roseannadana skit at NBC's Saturday Night Live video page. As the wonderful Gilda Radner character Roseanne Roseannadana used to say, "It's always something." That's particularly true in the tax world. Just when we thought we had made it relatively unscathed through the 2019 tax season, which already was crazy since it was the first one in which most of the Tax Cuts and Jobs Act (TCJA) changes took real life effect for taxpayers,... Read more →


Unfortunately for taxpayers and the Internal Revenue Service, there's nothing new under the sun when it comes to tax scams. Fortunately for taxpayers and the IRS, the tax agency and its Security Summit partners are still on top of the most common scams that continue to pop up in some form year-round. These 12 schemes, which have been dubbed the Dirty Dozen tax scams, get added attention, of course, during the main tax filing season. During these hectic days from Jan. 1 — yes, some folks are ready to file that soon — through April 15, millions of us are... Read more →


If a phone call from someone claiming to be with an official tax office doesn't sound quite right, it's because it's probably a scam call. (Photo by rocketace via Flickr) I'm not a paranoid person. And the only conspiracy theories I've ever paid attention to were the for-entertainment-purposes-only ones promoted on television's The X-Files. But I've got wonder if the tax crooks who are working nonstop to steal our identities and tax refunds also are colluding to troll the Internal Revenue Service. Case in point, the latest tax scam alert from the IRS. Today the tax agency issued a warning... Read more →


I attend fitness classes — OK, mostly yoga and I tend to head into Savasana a bit sooner than most of my fellow yogis — several times a week at my neighborhood club. Most of the members have been there for year and it's got a community feel. Still, I am always amazed at how much personal information folks share about themselves with people they really don't know very well. Many folks, in fact, share stuff albeit unintentionally with total strangers as a recent piece by Kate Klonick for the New York Times alarmingly illustrates. Klonick, who teaches information privacy... Read more →


The 2019 tax filing season appears, so far, to be thankfully free of tax scams. Maybe it's because things are going a bit more slowly, either due to the many tax law changes, the lengthy government shutdown that preceded it or a combination of both. I hate to be a buzzkill, but this early filing season respite is probably the best we can hope for. Tax realists know that crooks are still out there, planning and/or implanting their schemes to steal taxpayer identities and file fake returns to get fraudulent refunds. Scams increase as tax deadline nears: That concern is... Read more →


Prior year tax returns serve many purposes. This filing season, a check of last year's return will show you what your tax liability for 2017 was. You can compare that to your final 2018 tax bill to see if the Tax Cuts and Jobs Act (TCJA) did indeed lower your taxes even though your refund this year was smaller. You'll also need past year tax data if you're applying for a major loan, such as a mortgage. And if you're electronically filing your tax return this year, you'll need data from your previous year's taxes to complete that task. Record... Read more →


Most tax preparers are honest and work to help their clients. Some, however, use shady methods to make money off unsuspecting filers. Don't be one of them! More of us every tax-filing season are turning to tax professions. The 2019 filing season in particular has underscored the value that tax professionals add. This is the first year taxpayers have had to deal with the real-life effects of the many Tax Cuts and Jobs Act (TCJA) change. A knowledgeable tax preparer can help you navigate this new maze. But you need to be careful in picking the person to be your... Read more →


Longest U.S. federal government shutdown in history be damned! That's apparently the Internal Revenue Service's motto this year. It announced last week that it will start working on our 2018 tax returns — and issue any related refunds — this filing season, which is set to start on Monday, Jan. 28, even if it's technically still operating in modified shutdown mode. The IRS underscored that commitment on Friday, Jan. 11, when it announced that taxpayers who qualify to use Free File can now access the online no-cost tax preparation and e-filing option. Yep. Free File 2019 is now open for... Read more →


Dr. Seuss' The Grinch movie image courtesy Illumination Entertainment Grinches aren't always green. Sometimes we don't even know what they look like. That's the case when they set their sights on stealing not only Christmas, but your identity by sending fake emails. This holiday season, ID thieves have stepped up their phishing efforts. And some of those fake emails are going to tax professionals as part of payroll direct deposit and wire transfer scams. Tax pros targeted, too: Phishing scams tend to be small-d democratic. The business email compromise and/or spoofing tactics generally target all types of industry and employers.... Read more →


Welcome to a new week, another seven days for cyber criminals to try to steal your personal, financial and tax information. Last week, the Internal Revenue Service and its Security Summit partners in state tax departments and the tax world's private sector spent five days alerting us to potential tax identity theft schemes and ways to ensure we don't fall victim. Unfortunately, we need to be aware of the dangers of online tax and financial crime every single day of the year, not just for one designated week. That's why today I'm recapping the National Tax Security Awareness Week warnings.... Read more →


Thanksgiving to Cyber Monday are the biggest online shopping days. But e-commerce platform Shopify Plus says cyber shoppers this December are expected to spend $7 billion more than they did in November. Crooks also are well aware of the increase in online shopping as Christmas nears. It's the perfect time for them to try to snag financial account information, Social Security numbers, credit card information and other sensitive data they can use to steal individuals' identities. In the short term, cybercriminals can turn the stolen data into quick cash, either by draining financial accounts, charging credit cards or creating new... Read more →


Computer hacking ID theft image by Don Hankins via Flickr The billions of holiday shoppers who head for their electronic devices instead of malls are well aware of the precautions they need to take as they pick perfect gifts from websites. This year, everyone also needs to be on alert for tax crooks who've joined this annual online crime wave. Specifically, the Internal Revenue Service and its Security Summit partners warn that they've recently seen a surge of fraudulent emails where the sender impersonates the IRS and uses tax transcripts as bait to entice users to open documents containing malware.... Read more →


Canadian taxpayers have been victims of a telephone tax scam in which identity thieves purport to be from the Canada Revenue Agency. Tax and law enforcement authorities hope recent arrests at Indian call centers will at least slow the scam. (Screenshot from the joint The National/CBC Marketplace report. Click image to watch full video.) Despite some recent diplomatic and trade strains in the United States' relationship with Canada, the two countries share a lot of things, including tax scams. The most pervasive tax scam in America is telephone calls made by crooks pretending to be Internal Revenue Service agents. The... Read more →


Is there anyone anywhere who hasn't been a potential identity theft victim? Probably not. Even if the crooks haven't stolen your identity — yet — there's still the possibility if some holder of any of your personal information has been hacked. And that happens every day. The biggies get the most attention, like last year when cyber criminals got hold of Equifax credit bureau data, putting almost 146 million identities at risk. And no one is safe. Just last week, the federal government again fell victim to hackers. The State Department, like the Office of Personnel Management and Internal Revenue... Read more →


The tax collection efforts of four private debt collectors are paying off, bringing in $56.6 million in previously uncollected tax revenue in the first 14 months they've been on the job. However, it cost the tax bill collectors $55.3 million to do that job, netting Uncle Sam only $1.3 million. That's the word from an Internal Revenue Service report on the most-recent iteration of the private tax debt collection program. "Contrary to critics' claims and despite its slow-roll out, the IRS private debt collection program is already demonstrating that it can more than pay for itself with revenues returned to... Read more →


Classes, from Kindergarten to high school to college, are or about to be in session across much of the United States. That means parents can breathe a sigh of relief now that schools and teachers will once again add structure to their children's lives. But the beginning of the school year also prompts a new parental concern: their youngsters' privacy. No age limit for ID theft: Identity thieves don't set age limits on the people whose lives they try to steal. When a young person's identity is stolen, it sometimes takes longer to discover since most kids aren't involved in... Read more →


Taxpayer security remains a major concern across the United States. The Internal Revenue Service continues to use carrots — such as sharing security tips from tax pros who've been victimized — and sticks — specific data retention rules that practitioners must follow — to help protect tax pros and their clients. But the IRS is not alone in taking steps to protect taxpayer data. All states now taxpayer security breach notifications laws. And Virginia recently expanded its requirements, now mandating that tax professionals report any taxpayer data breach within a “reasonable amount of time." Enhancement of existing law: This new... Read more →


If you're superstitious or suffer from paraskevidekatriaphobia, today is not a good day. In case you haven't checked your calendar, it's Friday the 13th. Even scarier is the reality that any day can be unlucky if you happen to fall for a tax scam. It's true that most tax crooks use scams to steal your identity and then file fake returns to get fraudulent refunds in your name. It's also true, though, that these scammers work year-round. That's why Friday the 13th is a good day to look at 13 scary tax scams that have appeared so far this year.... Read more →